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Price Trends at Livestock Auctions
Author(s) -
Buccola Steven T.
Publication year - 1982
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241173
Subject(s) - bidding , common value auction , economics , equity (law) , reservation , microeconomics , reservation price , dutch auction , quality (philosophy) , empirical evidence , auction theory , revenue equivalence , computer science , computer network , philosophy , epistemology , political science , law
Auction bidders may pursue a large number of reasonable bidding strategies, including those that are risk‐neutral and risk‐averse. Risk‐averse bidders are especially tempted by the auction process to discriminate against themselves, that is, to offer prices close to their reservation prices or target prices. Self‐discrimination, in turn, usually implies that quality‐corrected prices of individual lots trend downward as the sale proceeds. The empirical evidence for downtrending prices at selected yearling steer sales is examined. Implications are then drawn for auction pricing efficiency and equity.